WallStSmart

Cummins Inc (CMI)vsRocket Lab USA Inc. (RKLB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 5495% more annual revenue ($33.67B vs $601.80M). CMI leads profitability with a 8.4% profit margin vs -32.9%. CMI earns a higher WallStSmart Score of 59/100 (C).

CMI

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 6.5Value: 3.3Quality: 6.8
Piotroski: 6/9Altman Z: 2.91

RKLB

Avoid

30

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.0Quality: 6.5
Piotroski: 4/9Altman Z: -0.37
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMISignificantly Overvalued (-61.7%)

Margin of Safety

-61.7%

Fair Value

$370.38

Current Price

$671.01

$300.63 premium

UndervaluedFair: $370.38Overvalued

Intrinsic value data unavailable for RKLB.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI3 strengths · Avg: 8.7/10
Market CapQuality
$88.34B9/10

Large-cap with strong market position

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

EPS GrowthGrowth
41.4%8/10

Earnings expanding 41.4% YoY

RKLB1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
35.7%10/10

Revenue surging 35.7% year-over-year

Areas to Watch

CMI3 concerns · Avg: 4.0/10
PEG RatioValuation
1.764/10

Expensive relative to growth rate

P/E RatioValuation
31.1x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

RKLB4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Price/BookValuation
26.0x2/10

Trading at 26.0x book value

Return on EquityProfitability
-18.8%2/10

ROE of -18.8% — below average capital efficiency

Free Cash FlowQuality
$-114.19M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.

Bull Case : RKLB

The strongest argument for RKLB centers on Revenue Growth. Revenue growth of 35.7% demonstrates continued momentum.

Bear Case : CMI

The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.

Bear Case : RKLB

The primary concerns for RKLB are EPS Growth, Price/Book, Return on Equity.

Key Dynamics to Monitor

CMI profiles as a value stock while RKLB is a hypergrowth play — different risk/reward profiles.

RKLB carries more volatility with a beta of 2.21 — expect wider price swings.

RKLB is growing revenue faster at 35.7% — sustainability is the question.

CMI generates stronger free cash flow (990M), providing more financial flexibility.

Bottom Line

CMI scores higher overall (59/100 vs 30/100). Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Cummins Inc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Cummins is a Columbus, Indiana based multinational corporation that designs, manufactures, and distributes engines, filtration, and power generation products. Cummins also services engines and related equipment, including fuel systems, controls, air handling, filtration, emission control, electrical power generation systems, and trucks.

Rocket Lab USA Inc.

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Rocket Lab USA Inc. is a leading aerospace and defense company specializing in small satellite launch services and integrated space systems, playing a pivotal role in the burgeoning space industry. Founded in 2006, the company is best known for its Electron rocket, which offers reliable and cost-effective launch solutions for both commercial and governmental clients. In addition to its launch capabilities, Rocket Lab has developed the Photon satellite platform, enhancing its service offerings and driving vertical integration. With the increasing demand for efficient space solutions, Rocket Lab is strategically positioned to leverage its innovative technologies and expand its market presence in the competitive launch sector.

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